In recent years, leasing has become a popular trend in developed countries such as the US and Europe, especially for electric vehicles.
Observers predict that with the convenience of the electric vehicle ecosystem, this trend will quickly spread in Vietnam, bringing numerous financial advantages.
A new, flexible way to “own” a car
According to statistics, in recent years, leasing has accounted for about one-third of new car sales in the US, even reaching 60-70% in the luxury segment. DreamLease estimates that in the UK, this figure is around 20-30%, and in Europe, it’s over 25%, with Germany, France, and Spain leading the trend (according to McKinsey).
In many countries, leasing is a popular option, especially for luxury cars.
In the US and Europe, the main reason people choose leasing is the lower monthly costs, flexible lease terms, and additional service packages. Notably, this option also allows users to drive the newest models and experience the latest technology at a reasonable cost.
This is especially true for young people who may not have the financial means to own a new car. Andrea Nguyen, a Vietnamese student studying in California, shared: “I decided to lease a car because it allows me to change cars after a few years without worrying about depreciation or maintenance costs.”
Leasing is not only popular with individual customers but also with businesses in the US and Europe, who consider it a financially optimal choice. Statistics from Germany show that nearly 80% of company cars are leased vehicles.
Interestingly, people worldwide are increasingly leasing electric cars. According to IEA statistics, the number of European customers leasing clean-energy vehicles increased by 40% in 2023. The advantages of technology, driving experience, and environmental benefits are why more and more customers and businesses choose electric cars.
Significant potential in Vietnam
The car leasing market in Vietnam is also expected to have significant potential. A report by Report Ocean predicts that the car leasing market in Vietnam will reach a billion dollars by 2032, with a compound annual growth rate (CAGR) of nearly 14% from 2024 to 2032.
FGF is a pioneer in leasing VinFast electric cars in Vietnam, offering flexible leasing options.
Mr. Hoang Tung, a long-time car market observer in Hanoi, believes that Vietnam’s car leasing market will grow rapidly for three fundamental reasons. First, FDI inflows remain robust, increasing the number of expatriates in Vietnam. These individuals are used to the “car leasing culture” in their home countries and often prefer leasing services.
The second reason, according to Mr. Tung, is the strong recovery of the tourism industry. After the 2020-2022 period, international tourist arrivals have rebounded and even increased significantly, creating substantial demand from this customer group. Notably, the third reason is urbanization and the rapid growth of the middle class in Vietnam, especially young customers who are modern, flexible, and eager to experience new technologies.
“The trend of leasing cars will quickly catch on in Vietnam, especially with the entry of large-scale enterprises offering high-quality cars, comprehensive service packages, easy accessibility, and simple procedures,” said Mr. Hoang Tung.
According to the expert, leasing has been available in Vietnam in recent years but mainly through small-scale, unprofessional, and unremarkable models. However, with the increasing demand and the recent boost from FGF’s electric car leasing model – a newly established company by Vingroup Chairman Pham Nhat Vuong – the car leasing market will become much more vibrant.
In addition to competitive and flexible daily, monthly, and yearly rates, experts believe that Vietnamese users will, for the first time, experience a “no-cost” leasing service: no fuel costs, no road maintenance fees, no physical damage insurance (already included in the lease cost), no smoke, and no gas odor.
“VinFast electric cars have already attracted many domestic users. With this unique electric car leasing model, those who cannot afford to own a car or prefer flexibility in ownership may opt for this new option. This will be a boost for the promising market in Vietnam,” said Mr. Hoang Tung.
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